Tokyo Joe Settles w/ SEC
By Judith Burns
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Yun Soo Oh Park, the Internet stock-picker better
known as "Tokyo Joe," has agreed to pay $754,000 to settle allegations he
defrauded investors who flocked to his Web site.
Park will repay $324,934 of allegedly ill-gotten gains, and pay a $429,696
penalty, according to an agreement approved Thursday by a federal court in
Chicago. Park also agreed to provide a hyperlink to the court order from his
Web site, which is still in operation, for a one-month period.
In settling the Securities and Exchange Commission case, Park didn't admit
or deny the agency's allegations. He had previously sought to dismiss the
case, arguing he wasn't an investment adviser.
"This case has established ground-breaking precedent," SEC enforcement
division director Richard Walker said in a prepared statement. "Those who
are
in the business of offering investment advice on the Internet may take on
the
same duties and responsibilities as other investment advisers."
Park, a one-time burrito seller, operates a Web-based hot-stock alert
service, and members of his "Societe Anonyme" pay up to $200 a month to
receive daily e-mails of his stock opinions and market reports. The Web site
also offers online chat and message boards.
The SEC sued Park last year, claiming he inflated his performance record,
illegally touted stocks and engaged in scalping, or selling stocks he
recommended others buy.
"We're not leaving any profits on the table," said Thomas Szromba, a
senior
trial counsel in the SEC's Chicago office. Under the settlement, he said
Park
will return gains on 13 alleged instances of scalping and one alleged tout.
Park's attorney, Ira Sorkin, said his client wants to "get on with his
life," and noted that he is settling for an amount substantially less than
the
$2.2 million originally sought by the SEC.
"There have been no findings of wrongdoing" by Park, his attorney added.
As
a settled matter, the case won't have broad-reaching impact, he added.
"There's no real precedent here," said Sorkin.
-By Judith Burns, Dow Jones Newswires, 202-862-6692;
judith.burns@dowjones.com |
